Construct the Dupont system of analysis using the following financial data for Smith Industries and determine which areas of the firm need further analysis.

Smith Industries: Sales 15,000,000 Net profit after taxes 975,000 Total assets 20,000,000 Total liabilities 12,882,563

Industry Averages: Total asset turnover 0.8 Debt ratio 40.00% Equity multiplier 1.8 Return on total assets 7.50% Return on equity 13.70% Net profit margin 9.50% A. What is the equity multiplier for Smith Industries? B. What is Smith Industries asset turnover ratio? C. What is the level of Smith Industries net profit margin? D. What is the return on equity for Smith Industries? E. What would be financial concerns or strengths for Smith Industries?